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Intuitive Surgical (ISRG) |
HenryTo
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 Posted: Sun Apr 24, 2005 9:21 am Post subject: Intuitive Surgical (ISRG) |
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Just announced earnings on Thursday evening - beat by five cents a share and the stock proceeded to tank 20% on Friday. ISRG is a Motley Fool's Rule Breaker pick, by the way.
Original link (which includes the quarterly financial statements):
http://biz.yahoo.com/iw/050421/085121.html
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Press Release Source: Intuitive Surgical, Inc.
Intuitive Surgical Announces $41.6 Million First Quarter Revenue, Up 54% and $9.1 Million Net Income, $0.25 Per Share
Thursday April 21, 4:05 pm ET
SUNNYVALE, CA--(MARKET WIRE)--Apr 21, 2005 -- Intuitive Surgical, Inc. (NasdaqNM:ISRG - News), the industry leader in surgical robotics, today reported first quarter 2005 sales of $41.6 million, increasing 54% from $27.1 million for the first quarter of 2004. Higher sales were driven by higher da Vinci® Surgical System shipments and continued recurring revenue growth.
Intuitive sold 19 da Vinci® Surgical Systems during the first quarter of 2005, compared to 14 in the first quarter of 2004. First quarter 2005 system revenue increased to $21.3 million from $14.6 million during the first quarter 2004.
First quarter 2005 recurring revenue, consisting of instrument, accessory, service and training revenue, increased to $20.3 million from $12.5 million during the first quarter 2004. Recurring revenue growth resulted from a larger installed base of da Vinci® Surgical Systems and increased system usage.
First quarter 2005 operating income increased to $8.9 million, up from $0.3 million reported for the first quarter 2004.
The company reported first quarter 2005 net income of $9.1 million, or $0.25 per diluted share, compared to $0.9 million, or $0.02 per diluted share for the first quarter 2004.
Intuitive was $17.4 million cash flow positive for the first quarter 2005, ending the period with $149.5 million in cash and short-term investments.
Commenting on the announcement, Lonnie Smith, Chairman and CEO of Intuitive Surgical, said, "We are pleased with our first quarter financial results which demonstrate the power of our business model to sustain high revenue growth and generate cash. We remain committed to growing our company within realistic financial constraints, focusing on the 'vital few' things that will truly make a difference, and driving future investment priorities based on clinical need and economic return."
The company will also announce these results at a conference call today at 1:30 pm PDT. The dial-in numbers for the call are 877-909-3508 for participants located in the U.S. and 484-630-4228 for participants located outside the U.S. The passcode is ISRG and the meeting leader is Mr. Lonnie Smith. To access financial information that will be discussed on the call, please visit Intuitive Surgical's website at www.intuitivesurgical.com.
About Intuitive's Products:
The da Vinci® Surgical System consists of a surgeon's viewing and control console having an integrated, high-performance InSite® 3-D vision system, a patient-side cart consisting of three or four robotic arms that position and precisely maneuver endoscopic instruments and an endoscope, and a variety of articulating EndoWrist® Instruments. By integrating computer-enhanced technology with surgeons' technical skills, Intuitive believes that its system enables surgeons to perform better surgery in a manner never before experienced. The da Vinci® Surgical System seamlessly and directly translates the surgeon's natural hand, wrist and finger movements on instrument controls at the surgeon's console outside the patient's body into corresponding micro-movements of the instrument tips positioned inside the patient through small puncture incisions, or ports.
The Aesop® Endoscope Positioner is a voice-activated robotic arm that automates the critical task of endoscope positioning, providing the surgeon with direct control over a smooth, precise and stable view of the internal surgical field.
The Hermes® Control Center is a centralized system designed to voice control a series of networked "smart" medical devices.
Last edited by HenryTo on Sun Apr 24, 2005 9:23 am; edited 1 time in total |
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Intuitive Surgical (ISRG) Replies |
HenryTo
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Location: Los Angeles, California
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| Posted: Thu Apr 19, 2012 2:15 am Post subject: |
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The invasion of the robots continues. Morningstar on ISRG's 1Q earnings.
| Quote: | | Intuitive Surgical ISRG reported a stellar first quarter, with revenue up 28%, driven by 32% growth in instrument sales, 24% growth in system placements, and 27% growth in service revenue. The company placed 140 Da Vinci systems (94 net), with 105 sold in the United States and 35 abroad (14 in Europe). While the placement was excellent in the U.S., Europe was a bit slower than expected, hindered by macro concerns. The company saw robust procedure growth, up 29%, with general surgery and gynecology leading the way. Intuitive received reimbursement approval in Japan for prostatectomy too, offering another catalyst for growth. The company updated its guidance for 2012, upping procedure growth by 100 basis points to 25%-27% and revenue guidance by 200 basis points to 19%-21%. Even with a blowout first quarter, the company's new guidance is still in range of our revenue growth projections for 2012. With Intuitive's updated guidance for operating income a tad lighter than our forecast, we remain comfortable with our 2012 earnings per share estimate. We plan to update our model for cash flows realized since our last update, which will probably result in an increase to our fair value estimate, but we believe the shares remain overvalued. Management exercises admirable caution when it comes to share repurchases, as evidenced by no buybacks in the quarter and the commentary that implied buybacks are not the most attractive use of its capital currently. |
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HenryTo
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HenryTo
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Posts: 11736
Location: Los Angeles, California
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| Posted: Wed Oct 19, 2011 7:53 pm Post subject: |
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Morningstar on ISRG's 3Q estimate-beating earnings:
| Quote: | | Intuitive Surgical ISRG turned in an astounding third quarter, which was unexpected by us and the market in large part because the firm was able to avoid both the typical seasonal pattern of the period and the fallout from growing fiscal concerns in Europe. We are raising our expectations for 2011 and plan to boost our 2012 estimates due to these trends, which will cause a modest increase to our fair value estimate. We are placing the shares under review. In the quarter, sales grew 30% year over year to $447 million. Not only did sales growth accelerate over the first half of 2011, when the firm grew a respectable 20% year over year, but Intuitive Surgical was able grow from the second quarter when it only reported $426 million in sales. Typically, medical equipme nt firms like Intuitive Surgical experience contractions sequentially in third-quarter sales. Intuitive Surgical was able to defy those odds by highlighting the ongoing advantages of its technology over other options. New system sales and upgrades grew 25% year over year. Average system selling prices grew in part because of second console sales and simulator sales, but most of the firm's system growth acceleration was due to the increasing demand for da Vinci in general. We were particularly impressed by growing demand in Europe (primarily related to urology indications) despite the fiscal questions being raised by governments there, which ultimately pay for socialized medicine programs. Intuitive's technology benefits appear to be trumping those questions for now. Even the firm's instrument sales grew sequentially, defying the odds in a period when we continue to hear reports of fewer doctor visits. Instrument sales grew 38% year over year primarily on 30% procedure growth with the balance resulting from per procedure supplies and initial stocking orders. Thanks to this outperformance on the top line, Intuitive was able to slightly exceed its long-term goal of a 40% operating margin in the quarter. Net income grew 41% year over year. The company continues to beat all expectations, and management raised its outlook for the second time in 2011. Now, it expects 29%-30% procedure growth (up from 27%-29% previously), 22%-23% sales growth (up from 19%-21%), a slightly higher gross margin between 72% and 72.5%, and operating expense growth of 19.5%-20.5% (from 18%-20%). Earnings and free cash flow implied by this outlook exceed our current expectations, and we plan to boost our short-term estimates based on the outstanding results coming out of this firm. |
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HenryTo
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| Posted: Thu Jul 21, 2011 2:20 am Post subject: |
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Morningstar on ISRG's 2Q earnings
| Quote: | | Shares of Intuitive Surgical ISRG traded up after its second-quarter results and full-year outlook were reported late Tuesday. Those results were in line with our expectations, and although management increased its outlook for 2011, we believe our current expectations remain very close to implied projections. After analyzing the full quarterly filings, we may modestly raise our fair value estimate to reflect cash flows generated since our last full update. However, we still think shares look more than fully valued, and we wouldn't be surprised to see a pullback at any sign of weakness. So far, though, the shares continue to defy gravity on Intuitive's ongoing success. In the second quarter, sales grew 21% year over year to $426 million on 30% procedure growth, 35% instrument sales growth, 11% system sales and upgrade growth, and 22% services growth. Those trends remain in line with our expectations. The company's main procedure growth drivers are hysterectomy, prostatectomy (outside the United States), other urology and gynecology procedures, and new procedures in thoracic, colorectal, and transoral niches. We continue to believe procedures should stay on a high growth trajectory, as da Vinci's benefits are clear for patients wishing to return to normal activities quickly, for surgeons who want to expand their use of minimally invasive techniques in a variety of surgical applications, and for hospitals wishing to achieve cost benefits associated with shorter durations of stay and fewer surgical complications. However, new systems and upgrades may remain a drag on overall growth; this quarter's 11% growth rate was admirable, given the difficult comparables and already large installed system base. The company also continues to generate substantial cash flows, with cash flows from operations ($170 million) at 145% of net income ($117 million). Even on a GAAP basis, Intuitive maintains one of the highest profit levels in the medical device industry, turning in an operating margin around 40% in the quarter. Earnings per share grew 33% to $2.91. With stellar first-half results in the books, management decided to raise its outlook for 2011. The company now expects 27%-29% procedure growth, up from 25%-28% previously, and 19%-21% sales growth, up from 16%-20% previously. Management also appears to expect modest leverage on the bottom line from slightly lower operating expense growth than sales growth and a slightly lower tax rate. Considering those recently raised expectations, our 22% earnings per share growth expectation, and free cash flow growth expectation of 28% in 2011 already look reasonable. |
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HenryTo
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| Posted: Wed Oct 20, 2010 3:33 pm Post subject: |
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Morningstar on ISRG's 3Q earnings:
| Quote: | | Intuitive Surgical ISRG turned in another solid quarter, and the company remains on target to meet our full-year expectations. We're maintaining our fair value estimate. The company reported sales of $344 million in the third quarter, up about 26% when adjusting for deferred sales recognized in the year-ago period. System sales continued at a fast pace; Intuitive turned in around 23% system growth when adjusting for deferred system sales last year. Average selling prices declined slightly to $1.43 million in the third quarter from the second quarter's $1.48 million, largely because of a decline of the exchange rate used to set system prices in Europe in Intuitive's hedging program. Procedure trends remain positive, with da Vinci procedures growing 33% in the third quarter, primarily from strength in hysterectomy. Intuitive's already very high penetration of the U.S. prostatectomy market continues to lower the growth opportunities in that core franchise. Beyond prostatectomy and even hysterectomy, we see plenty of opportunities for Intuitive Surgical to continue expanding, and international opportunities still look underpenetrated to us. Instrument sales grew 26% year over year. While still solid, procedure mix and inventory stocking trends are dragging this growth rate below procedure growth. Services grew 31% year over year. In terms of profitability and financial health, the firm remains in rarified air. In the third quarter, the company turned in a 38% operating margin and 25% net margin. With its $1.6 billion net cash and investment holdings, Intuitive Surgical may continue to look for ways to return value to shareholders. The company has engaged in share repurchases in recent months. While we don't think management added value w ith those activities since it repurchased shares at an average of $277 per share (close to what we think they are actually worth), we wouldn't be opposed to the firm making opportunistic repurchases in the future, especially if reinvestment opportunities remain scarce. |
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HenryTo
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HenryTo
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| Posted: Sun Apr 24, 2005 9:23 am Post subject: Success Is Intuitive |
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Latest article on ISRG from the Motley Fool:
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Success Is Intuitive
By Stephen D. Simpson, CFA
April 22, 2005
C-3PO? A wimp.
Gort? Certainly no wimp, but a bit stiff.
Robot B9? "Danger, danger!"
Bender? Canceled.
Intuitive Surgical's (Nasdaq: ISRG) da Vinci Surgical System? Now that's a robot to know and love.
Sales at Intuitive Surgical, which is a Motley Fool Rule Breakers selection, climbed 54% in the first quarter as the company sold 19 additional systems and 19 fourth arms, and saw ongoing growth in procedure volume and instrument/accessory demand. Exiting the quarter, Intuitive Surgical has shipped 305 robot systems around the world.
While total revenue and system placements were down sequentially, that's been the case for at least three years running. When you consider the normal capital equipment budget cycle for most medical centers, it's not surprising to see an increase in fourth-quarter orders followed by a slowdown in the first quarter. As such, I wouldn't expect that pattern to change until disposable revenue becomes the majority of revenue.
For the quarter, Intuitive Surgical's gross margin improved from last year (65.5% versus 58.5%) and operating margin came in at 21.4%. Although operating and net income were well above the year-ago levels, they were down on a sequential basis along with revenue.
More important from my point of view, instrument and accessory revenue looked pretty healthy. Revenue climbed 63% for the first quarter and 11% sequentially. As instrument and accessory revenue is inextricably linked to robot usage and procedure volume, I would argue that this growth is an important affirmation that surgeons are actually using the robots more.
The da Vinci continues to be a popular option for prostatectomy procedures, and there is an ever-growing body of evidence that indicates that use of the surgical robot in such procedures significantly reduces complications and recovery time. While not yet as popular in mitral valve repair or gastric bypass as in urology, these other indications continue to grow in significance as well.
Tracking the sharp increases in revenue and profitability, Intuitive Surgical stock has been on a tear since 2003. As a result, the stock trades at an impressive 55 times trailing earnings.
It's important to note, though, that valuation is a tricky matter when you're dealing with fast-growing companies that are basically pioneering entirely new businesses. During the rapid growth years, stocks like Cisco, Microsoft, and Starbucks nearly always looked "expensive," and that's equally true for medical device companies like Medtronic (NYSE: MDT) and Stryker (NYSE: SYK) back in their younger days.
Now, I'm not saying that Intuitive Surgical is the next Microsoft, or even the next Stryker. What I am saying is that strictly applying standardized valuation philosophies to decidedly non-standard companies will pretty much always leave you watching these stocks grow from the sidelines. Intuitive may or may not be a good buy today, but the business is on fire and surgical robotics looks like it's here to stay. |
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